There are five section in Paper-17 of CMA Final Course viz. A) GAAP and Accounting Standards, B) Accounting of Business Combinations & Restructuring, C) Consolidated Financial Statements, D) Developments in Financial Reporting, and E) Government Accounting in India.
Section A (GAAP and Accounting Standards) [30 Marks]:
Section A of Paper-17 of CMA Final Course contains related to Accounting Standards. This section carries 30% weightage.
1. Accounting Standards
(a) Generally Accepted Accounting Principles in India
(b) Accounting Standards (AS) – Applicability, Interpretation, Scope and Compliance
(c) International Financial Reporting Standards
(d) Over View of Ind AS
(e) Relative view of AS VS Ind AS VS IFRS
Section B (Accounting of Business Combinations & Restructuring) [20 Marks]:
Section B of Paper-17 of CA Final Course contain topic related to Accounting of Business Combinations & Restructuring. This section carries 20% weightage.
2. Accounting for Business Combinations & Restructuring (as per Ind AS)
(a) Relevant Terms, Types of merger, methods of accounting, treatment of Goodwill arising on merger, Purchase consideration and settlement
(b) Accounting in books of vendor/ transferor and transferee
(c) Accounting for investment in subsidiary
(d) Accounting for Mergers / Acquisitions (including chain holdings, cross holdings, multiple holdings)
(e) Corporate Financial restructuring, Reconstruction Schemes, De-merger, Reverse merger
(g) Notes to Accounts & related disclosures under amalgamation
Section C (Consolidated Financial Statements) [20 Marks]:
Section C of Paper-17 of CMA Final Course contains topics related to Consolidated Financial Statements (CFS) and carries 20% weightage.
3. Group Financial Statements
(a) Concept of a group, Purposes of consolidated financial statements, Consolidation procedures, Minority interest, Goodwill, Treatment Pre-acquisition profit and Post acquisition profit and concept of Fair value at the time of acquisition.
(b) Consolidation with two or more subsidiaries, consolidation with foreign subsidiary.
(c) Consolidated Income Statement, balance Sheet and Cash Flow Statements for Group of companies.
(d) Impact on group financial statements at the point of acquisition
(e) Treatment of investment in associates in consolidated financial statements. Compare and contrast acquisition and equity methods of accounting
(f) Treatment of investment in joint ventures in consolidated financial statements
Section D (Developments in Financial reporting and Other Item of reporting) [15 Marks]:
Section D of Paper-17 of CMA Final Course contains four topics and carries 15% weightage. Detail contents of these topics has been explained below.
4. Recent trends in Financial reporting
Concept of Triple Bottom Line Reporting
5. Valuation, Accounting and Reporting of Financial Instruments and others
(a) Recognition & Valuation Financial Instruments
(b) CENVAT / VAT Accounting
(c) NBFC – Provisioning Norms and Accounting
(d) Valuation of Shares
(e) Valuation of Goodwill
6. Share Based payments
(a) Meaning, Equity settled transactions, Transaction with employees and non-employees
(b) Vesting conditions, Determination of Fair value of Options, Determination of ESOP Provision and Related Disclosure and settlement of ESOP
7. Reporting Through XBRL (Extended Business Reporting Language)
Section E (Government Accounting in India) [15 Marks]:
Section E covers topics related to Government Accounting Procedure and Standards. This section carries 15% weightage.
8. Government Accounting
(a) General Principles and comparison with commercial accounting
(b) Role of Comptroller and Auditor General of India
(c) Role of Public Accounts Committee, Review of Accounts
(d) Government Accounting Standards issued by Government Accounting Standards Advisory Board (GASAB)
(e) Government Accounting and Reporting
Paper 18: Indirect Tax Laws and Practice
There are two sections in Paper-18 of CMA Final Course viz. A) Advanced Indirect Tax – Laws & Practice and B) Tax Practice and Procedures.
Section A (Advanced Indirect Tax – Laws & Practice) [80 Marks]:
Section A covers five topics and carries 80% weightage of Paper-18 of CMA Final Course.
1. Central Excise Act (20 Marks)
(a) The Central Excise Law – CENVAT Credit availment, Utilization and Reversal
(b) Assessments, Demands, Refund, Exemptions, Power of Officers
(c) Interpretation of Show Cause Notice and Drafting of response against Show Cause Notice, Adjudication, Appeals, Settlement Commission, Penalties
(d) Central Excise Audit and Special Audit under 14A and 14AA of Central Excise Act
(e) Tariff Commission and other Tariff authorities
2. Customs Act (10 Marks)
(a) Valuation, Customs Procedures, Import and Export Procedures, Baggage, Exemptions, Warehousing, Demurrage, Project Import and Re-imports
(b) Penalties and Offences
(c) Anti-dumping Laws – Valuation under Anti-dumping laws, Safeguards, Countervailing Duties, Relevance of Cost Information, Application of Cost Accounting principles in assessment, Impact of taxation on WTO, Anti Dumping Measures.
3. Service Tax (30 Marks)
(a) Introduction, Nature of Service Tax, Service Provider and Service Receiver, Registration and related issues
(b) Negative List of Services, Exemptions and Abatements
(c) Valuation of Taxable Services
(d) Payment of service Tax, Returns of Service Tax
(e) CENVAT Credit Rules, 2004
(f) Point of Taxation Rules, 2012
(g) Place of Provision of Service Rules, 2012
(h) Administrative aspects of Service Tax – Return, Payment of Tax, Assessment
(i) Special Audit u/s 72A of the Finance Act, 1994 for Valuation of Taxable Services
4. Foreign Trade Policy, Export Promotion Schemes, EOU, SEZ, EXIM Policy (10 Marks)
(a) Foreign Trade Policy
(b) Export Promotion Schemes,
(c) Export Oriented Units (EOU)
(d) Duty Exemption Scheme and Duty Drawback
(e) Special Economic Zone (SEZ)
5. Central Sales Tax and VAT Act (10 Marks)
(a) Assessment of transactions under CST and VAT
(b) Returns and assessment procedures under Central Sales Tax (CST) and VAT Act
Section B (Tax Practice and Procedures) [20 Marks]:
Section B of Paper-18 of CMA Final Course contains case study related to tax practice and procedures. This section 20% weightage.
6. Case Study Analysis (20 Marks)
Note that the contents of Paper-18 of CMA Final Course shall be reviewed every 6 months and shall be incorporated accordingly.
Paper 19: COST AND MANAGEMENT AUDIT
There are four section in Paper-19 of CMA Final Course viz. A) Cost Audit, B) Management Audit, C) Internal Audit, Operational Audit and other related issues, and B) Case Study on Performance Analysis.
Section A (Cost Audit) [35 Marks]:
Section A covers six topics related to cost audit and carries 35% weightage.
1. Nature, Scope, utility and Advantages of Cost Audit
2. Companies (Cost Records and Audit) Rules, 2014
3. Professional Ethics, Misconduct, Offences and Penalties
4. Cost Accounting Standards
5. Cost Auditing Assurance Standards
6. Format of Cost Audit Report – XBRL – Salient features
Section B (Management Audit) [15 Marks]:
Section B covers five topics related to management audit and carries 15% weightage of Paper-19 of CMA Final Course. The detail contents have been described hereunder.
1. Management Reporting issues under Cost Audit – Performance Appraisal Report
2. Management Audit – Meaning, Nature, Scope, Need for Management Audit and Reporting under Management Audit
3. Energy Audit, Efficiency Audit, Propriety Audit and Systems Audit
4. Evaluation of Corporate Image – Corporate Development Audit –Corporate Strategy Audit
5. Impact of environmental pollution: Social Cost Benefit Analysis, Corporate Social Audit and
Section C (Internal Audit, Operational Audit and other related issues) [25 Marks]:
Section C covers topics relating to internal and operation audit related issues and carries 25% weightage of Paper-19 of CMA Final Course.
1. Concept of Internal Audit
2. Provisions of Internal Audit under Companies Act, 2013
3. Audit Planning, Audit Programme, Audit working papers, Reporting to Management
4. Receivables Audit, Audit of Hospitals, Hotels, educational Institutions, Co-operative Societies, Self Help Groups, Non-Governmental Organizations (NGOs), corporations, Municipalities, Panchayats.
Section D (Case Study on Performance Analysis) [25 Marks]:
Section D of Paper-19 of CMA Final Course carries 25% weightage and covers case study on the basis of the Companies Performance for managerial decision-making with reference to the following:
(a) Application of Ratios for assessment of performance.
(b) Waste Multiplier
(c) Utilities Consumption i.e., Power, Fuel etc.
(d) Capacity determination and Utilization
(e) Value Addition
(f) Inventory valuation
(g) Abnormal Events such as Strike, Lock-out and other factors
(h) Profitability analysis
(i) Reconciliations of Financial and Cost Records i.e., Profit, Taxation
Paper 20: Strategic Performance Management and Business Valuation
There are two section in Paper-20 of CMA Final Course viz. A) Strategic Performance Management and B) Business Valuation.
Section A (Strategic Performance Management) [50 Marks]:
Section A of Paper-20 of CMA Final Course covers four topics which carries 50% weightage. The contents have been described hereunder.
1. Conceptual Framework of Performance Management
(a) Performance Management- concept, components
(b) Performance, Productivity and Efficiency
(c) Financial performance analysis
(d) Supply Chain Management (SCM)
(e) Customer Relationship Management (CRM) & Customer Profitability analysis;
2. Performance Evaluation & Improvement Tools
(a) Balanced Score Card
(b) Du-Pont Analysis
(c) Bench marking & Bench trending
(d) Six Sigma
(e) Statistical Quality Control (SQL)
(f) Plan- Do- Check- Action (PDCA)
(g) Management Information System
(h) Online Analytical processing tools
(i) Tools to Improve Productivity and Profitability – MRP I, MRP II and ERP
(j) Total Productivity Management
(k) Total Quality Management
3. Economic Efficiency of the firm –Performance Analysis
(a) Profit-maximization under different market structure
(b) Market factors affecting Pricing decisions
4. Enterprise Risk Management
(a) Risk Management
(i) Risk Management – Introduction and objectives
(ii) Risk Measurement – Pooling, Diversification, Total Loss Distribution, Ruin Probability
(iii) Risk Analysis – Risk Mapping and Risk indicators
(b) Corporate Risk Management
(i) Enterprise Risk Management
(ii) Risk Retention or Reduction
(iii) Value at Risk (VAR)
(iv)Introduction to Capital Adequacy Norms in Banking Industry
(c) Corporate Failure
(i) Corporate Distress Analysis- Causes
(ii) Corporate Distress Prediction Models: Edward Altmans Model, NCAER Models
Section B (Business Valuation) [50 Marks]:
Section B of Paper-20 of CMA Final Course covers four topics and carries 50% weightage. The detail contents of these topics have been mentioned below.
5. Business Valuation Basics
(a) Meaning of Value, Valuation and Business Valuation
(b) Principles of Valuation, Valuation Bias, Types of Values
(c) Role of Business Valuation in Corporate Finance and Business Acquisitions
6. Valuation Models
(a) Non-Discounted Cash Flow Method (DCF) – Accounting based, Earnings based, Cash flow based.
(b) Discounted Cash Flow Method
(c) Other methods of valuation
7. Valuation of Assets and Liabilities
(a) Valuation of Inventory
(b) Valuation of Investments – Bonds and Shares
(c) Valuation of Intangibles – Copy Rights, Good Will, Brand
(d) Valuation of Human Resources
(e) Value Added, Economic Value Added, Market Value Added
8. Valuation in Mergers and Acquisitions
(a) Meaning of Business Mergers and acquisitions and Types
(b) Application of valuation models for business mergers and acquisitions
(c) Determination of Exchange Ratio(Swap)or Purchase Consideration
(d) Synergistic benefits and distribution of synergy gains
(e) Recognition of Interest of various stakeholders
(f) Selection of appropriate cost of capital for valuation
(g) Impact of merger on value of share
If you have any query related to the Syllabus-2016 of CMA Final Course, then please drop a comment below.